This week, the Spanish government brought a controversial proposal to the Social Security dialogue table aimed at increasing social contributions from self-employed workers (“autónomos”) starting from 2026 and continuing through 2028. This initiative has provoked backlash from the primary association representing self-employed individuals and lacks support from various political groups, including Sumar, a partner in the government coalition.
What Does the Proposal Entail?
The Ministry of Social Security, led by Elma Saiz , aims to bridge the gap in contributions to Social Security between salaried employees and self-employed workers. The goal is to achieve parity by 2032. The transition period began in 2023, which will progressively increase contributions over three-year intervals.
In the recent proposal, the government suggests variable contribution increases based on income levels. These increases can range from 4.3% for those earning between €10,800 and €14,000 annually to a staggering 34.9% for individuals making over €72,000. Across the three years from 2026 to 2028, total increases could reach between 13% and 104.9% .
In monetary terms, this will mean a contribution of between €217 for low earners (an increase of €17 from 2025) and €796 for high earners (an increase of €206).
How Does the Government Justify This?
The government emphasizes that nearly 40% of self-employed workers, approximately 1.38 million , fall into the first three income brackets of the contribution table (with incomes ranging from under €670 per month to €1,166 per month). Therefore, they will see only a minimal increase in their contributions. Furthermore, 63% of these workers opted to over-contribute in 2023 to secure better benefits, suggesting a willingness to pay more into the system.
“Their contribution is lower than the accumulated inflation since 2022 and less than the minimum in 2022, which was €294 ,” the government argues.
It is highlighted that only about 15% of self-employed individuals, or 570,000 people, are in the highest three contribution tiers (from €3,620 to over €6,000 per month). Most of these are partners or administrators of companies and will face the most significant increase in contributions. This is expected to enhance their benefit from cessation of activity (similar to unemployment benefits) from an average of €672 to €1,355 , and the birth and childcare allowance will increase from €960 to €1,937 .
Where Did This Idea Come From?
The rationale for updating self-employed contributions stems from Royal Decree-Law 13/2022 , which is part of the pension reform and commitments made by former minister José Luis Escrivá with the European Commission as part of the Recovery Plan . The initial agreement stipulated that self-employed contributions would be gradually adjusted based on actual incomes up to 2032, addressing the increasing costs associated with the retirement of the baby boom generation.
In 2022, contribution tables were established for the period 2023-2025, and now it is the government’s task to negotiate new increases for the next three years.
What Are the Reactions from Affected Parties?
Reactions among self-employed organizations have varied, but the most representative association, ATA , has strongly opposed the proposal. Its president, Lorenzo Amor, criticized it as a “ cash grab .” He argues that the principle of those who earn more paying more has been undermined and opposes setting contribution bases for the next six years without considering the current economic and political context.
The leftist association UATAE echoes similar concerns, indicating that it disrupts the reduction of contributions for the more vulnerable self-employed groups, who saw a decrease in their obligations in 2023 but will now face increases.
Conversely, UPTA provided a more favorable assessment, suggesting that the proposal aligns with the agreements made in 2022.
Will Political Parties Support This Measure?
Currently, it appears that the socialist faction of the government is isolated in its proposal, lacking support even from Sumar. The party led by Yolanda Díaz believes the government could focus more on taxing “rent-seekers” rather than entrepreneurs.
Other partners of Pedro Sánchez , including Junts and ERC , along with opposition parties such as the PP and Vox , have also expressed their dissent.
What Is the Ultimate Objective?
Beyond addressing income equality among different worker categories, the government’s ultimate aim is to increase collections for Social Security. This is crucial for managing the rising public pension expenses expected in the coming decades, especially with a significant portion of the population from the baby boom set to retire.
When crafting this measure, Escrivá projected annual contributions could provide an additional 0.5% of GDP —approximately €6.5 billion annual influx into public finances once fully implemented.
Will this Strategy Work?
While the immediate future may see a significant rise in revenue, this will lead to higher future expenses, as increased contributions will afford self-employed workers better pension benefits. Various experts believe that, in the long run, the system may revert to a deficit status, with revenues falling short of expenditures.
Thus, while this measure may be effective in the short term to address urgent financial challenges, it could be seen as a *band-aid solution*, postponing inevitable imbalances that may emerge in the decades to come.